4 things to do before you start investing
You just heard about investing and you can’t wait to start or maybe you knew about it all along but was waiting for the perfect time and now you are ready to start
Or even maybe you have been investing all these while but without setting the right foundation
Investing is just like every other thing worthwhile, even more worthwhile because how you go about it and the outcome affects your life greatly that’s why before you set out on your investment journey, you should pay special attention to these 4 things I’m about to share with you
- Write down your why: Why do you want to invest? Is it because you need more money or because you heard that investing is good, is it because you want to retire early or because you have a specific financial goal and you know that working alone will not help you achieve that goal? Is it because you want time freedom?
Why exactly do you want to invest? Please write it down boldly because only your strong reason why you started will motivate you to keep going when the going gets tough.
- Write down your goal: How much are you looking at making through investing? For those who wants to be financially free, it could be enough money to take care of your day to day expenses so you won’t have to work again but you have to be specific with your numbers
How much exactly do you want to get from your investment?
Writing down the amount will help you know the kind of investment that is fit for you because there are some investment options out there that there interest rate is as good as zero
So be specific with your numbers
I for instance want to start earning 2million naira in the next 5 years from my investments alone.
- Choose your investment option: it’s time to choose which investment option is best for you. There are plenty of investment vehicles out there and you can’t possibly invest in all of them. We have Real Estate, Commodities, Businesses, paper assets Foreign Exchange etc. There are several categories under each of the aforementioned. This means that even if you choose to go into real estate, you might not necessarily invest in all the categories in real estate, same thing applies to stock and the rest.
So read about probably all of the investment options so you know which one is suitable for you.
2- 4 investment option is perfect.
Joining an investment club is another way to invest but know that investments clubs invest in two or more of the investment options I mentioned above too. So even if you are joining an investment club, you need to know what they are investing your money into.
- Put a time frame: Now that you have your why, your goal and the investment options you want to go with, you should also set a time frame.
A time frame will make your goals more realistic and also give you a sense of commitment. Like me, I mentioned I want to be able to earn 2million naira every month from my investments in the next 5years and I have mapped out the investment options I will be investing with and also the amount expected from each option which if added up makes the 2million naira monthly income.
Your figure might be lower or higher than mine but please set a realistic goal.
Don’t set a goal expecting a miracle to happen. Set a goal that you are sure you would be able to accomplish without expecting any supernatural thing to happen.
I hope this helps.
Please drop a comment to tell us if this article was helpful or not.
Cheers to your investing success 🥂